Crude Oil Price Forecast – crude oil markets pulled back to find support

WTI Crude Oil

The WTI Crude Oil market pulled back a bit during the trading session on Monday, reaching down to the $50 handle. That being the case, it looks like we may form a bit of a hammer, but we are starting to see a little bit of resistance above at the 50 day EMA. Alternately, the 20 day EMA is just below, hovered just underneath the $50 handle. I think that it’s only a matter time before we break out of one of these moving averages, and I think that the market will simply follow what happens next. In other words, if we can break above the $50 EMA, the buyer should overwhelm the sellers. If we break down below the 20 day EMA, then the sellers will overcome the buyers.

Crude Oil Video 15.01.19

Brent

Brent markets went back and forth during the trading session on Monday as well, looking to use $60 as support. I believe that the 20 day EMA underneath is also offered support, just as the 50 day EMA above is offering resistance. Just as in the WTI Crude Oil market, I believe that a daily close above the 50 day EMA is exactly what we need to see to start buying from a longer-term perspective, just as a daily close below the 20 day EMA, pictured in green on the chart, would be a very negative turn of events and have sellers coming into overwhelm the market, perhaps driving down to the $55 handle.